China's CITIC Group announced on Sunday that it has successfully acquired the Kazakhstan oil assets of Canada's Nations Energy Company Ltd. for US$1.91 billion.

This is the third largest overseas oil acquisition made by Chinese companies.

The deal has made the CITIC to acquire a 100 percent interest of Nations Energy.

The acquisition allows the CITIC to develop the Karazhanbas oil and gas field in Mangistau Oblast, Kazakhstan. It has proven reserves in excess of 340 million barrels of oil and its current production is over 50,000 barrels of oil a day.

Pursuant to the approval received from the Kazakhstan regulatory authorities for CITIC's acquisition, the CITIC has granted to KazMunaiGas (KMG), the state-owned oil company of the Republic of Kazakhstan, a call option under which KMG may acquire a 50 percent interest in Nations Energy.

The option is exercisable within a one-year period and the price is based on CITIC's acquisition price for Nations Energy, said the CITIC.

Nations Energy's Kazakhstan oil assets also include a 100 percent interest in Argymak Trans Service LLP which provides transportation services and Tulpar Munai Services LLP which provides drilling, workover and training services.

(Xinhua News Agency December 31, 2006)